John J Hardy
Saxo Bank’s head of FX strategy John Hardy takes a closer look at trends and moves in today’s forex charts, including EURUSD, USDJPY, AUDUSD, and EURSEK.
Strategic trade
Trade view / 13 February 2018 at 11:11 GMT

Neglected geopolitical dangers could boost gold – #SaxoStrats

Chief Economist & CIO / Saxo Bank
Price target: .
Market price: 1329.01

The market is so focused on NASDAQ volatility that a lot of geopolitical risk is being ignored:
Israel and Iran are now directly facing off each other,  whereas in the past it was through a proxy: Haaretz – After years of covers proxy wars, Iran shifts to direct contact with Israel.

The Israelis are very vocal on their next move: Liverman (Defence Sec.) on Syria – This is not the time to bark, but to bite.

Also remember – we are days away from an escalation into trade war with Section 301 – Punitive US trade action against China is imminent – former top trade negotiator warns.

Our short-term “model” also likes the trade: Long @spot w. 1319.40 stop

Management and risk description

The risk to this trade is US inflation data tomorrow which could decide risk return in Q1:


 Source: Bloomberg

Entry: Spot (1329.01 at 10:10 GMT)

Stop: 1319.40

Time-horizon: Strategic

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
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